< Previousinvestment, and three of those are highlighted as follows: First , labor has always been an important location criterion, but with the rising demand for digital/AI and advanced technologies it is becoming a more critical consideration in A&D site selection initiatives for engineering and development processes. The advanced skills are in high demand across all industries, so A&D enterprises finding a market they can successfully recruit in and creating a strong value proposition for drawing new candidates is critical. For production operations, sourcing skilled labor is a growing business concern. A recent National Association of Manufacturers survey noted that three out of four U.S. manufacturers noted talent as their primary business challenge. The increased priority for production talent is [due to] insufficient trade or tech school output to meet growing manufacturing activity, turnover in the A&D industry and an aging workforce moving into retirement. Second , cost is a growing priority as margins have been affected by inflation, supply-chain disruption and workforce challenges. While gaining access to talent to drive innovation will still place operations in higher-cost markets, companies are seeking to diversify their location footprints to achieve labor and supply-chain cost savings. State and local incentives are an element of the cost-conscious criterion. Incentives can play a large role in offsetting start-up costs and provide an ongoing income stream to lower operating costs and preserve margins. Third , real estate availability can be a critical criterion for specialized or large- scale operations. For example, space vehicle testing, or land-based launch systems could require real estate sites with specific attributes that are not easily found. Factors associated with noise control, proximity to residential, schools and sensitive businesses are all highly considered for these site locations. SITE SELECTION NOVEMBER 2024 139 States and communities with a robust workforce development ecosystem will have a distinct advantage in pursuing A&D location investments.” — Scott Redabaugh , Managing Director, Location Consulting, JLL States and communities with a What makes a location (state or metro) competitive today as A&D companies consider site options? Scott Redabaugh, Managing Director, Location Consulting, JLL: States and communities with a robust workforce development ecosystem will have a distinct advantage in pursuing A&D location investments. States should have innovative recruitment and training solutions that accelerate a new operation’s start-up. For new start-ups and established operations needing new skills, the workforce solution should be fully customized to each company’s unique talent needs, processes and culture. A regional partnership across technical colleges, trade associations and even high schools 140 NOVEMBER 2024 SITE SELECTION can be an asset in developing a workforce pipeline for production operations while advancing new production technologies and processes to meet continual innovation of operations. e fi nal, key element of the workforce development ecosystem is the depth of university output in critical disciplines like engineering, computer science, AI/machine learning and data science. To help regions best compete, the institutions must fully embrace collaboration and partnership with industry to adapt and customize coursework and degree programs to the needs of industry. is will include undergraduate, graduate and continuing education off erings. Incentives can play an important role for the competitiveness of a state or community. Incentives are valuable for organizations seeking to ensure long-term access to talent, improve speed to market and minimize investment costs and tax burden. Examples of incentives that may benefi t an A&D organization include infrastructure grants for site improvements, tax reduction (inventory, property, sales, corporate income), tax credits, payroll tax rebates and electricity cost reduction. 2023 2,211,185 4.8% INCREASE 2022 2,110,224 2022 2,074,016 2021 2,034,342 In response to growing demand, the aerospace and defense workforce continues to increase — up 4.8% from 2022 to 2023. This growth far outpaces the national average of 1.7%. source: Aerospace Industries Association SITE SELECTION NOVEMBER 2024 141 J amaica has long cemented its name as a top business process outsourcing (BPO) destination. The country has garnered a base of 62,000 employees who support the $1 billion sector annually, according to Minister of Industry, Investment and Commerce Senator Aubyn Hill. The country’s location, just over an hour’s flight from Miami, has made it a hotspot for over 70 companies such as Alorica, Teleperformance, Xerox, Startek and Sutherland Global Services to nearshore operations and connect to the North American market. Since the COVID-19 pandemic the sector has added over 20,000 jobs, with a goal of expanding to 70,000 by 2025. Teleperformance unveiled its new location in Savanna-la-Mar in August 2024, with the promise of creating 800 new jobs. The site is the second page in the company’s Jamaica portfolio, as the BPO giant currently employs more than 3,700 residents at its over-20-year-old Montego Bay facility. The decision to grow its base by investing in the capital of Westmoreland Parish was geared toward improving the day-to-day of its staff, half of whom are based in the region and often travel over an hour northeast to work in Montego Bay. At the opening ceremony, Teleperformance Jamaica Country Manager and Senior Vice President Jake Becker said the move is the company’s way of making its employees more comfortable and productive. Here to Stay Almost 100 years since the Hendrickson family began a small bakery in Jamaica’s Saint Elizabeth Parish, a new $6.7 billion bakery is on its way to aid the company in expanding its international reach by 2025. National Baking made the decision to locate the facility in the neighborhood of Catherine Hall in Montego Bay to benefit regional growth throughout parishes on Jamaica’s west coast. The location will additionally support future export needs from Montego Freeport. The planned 120,000-sq.-ft. plant has been designed to be the company’s most modern, integrating advanced technology capable of producing 3,600 loaves an hour. Once construction is complete, National Baking will look to add 75 new members to its team. “We’ll incorporate the use of robotics for the first time in our businesses and these will go into our repetitive processes that human beings just can’t do anymore,” said National Baking Company Chairman Gary Hendrickson at the media launch for the project. “This will allow our management to focus on quality, plant efficiency and, most important, the well-being of our team.” The Deal’s Been Sealed About 700 miles east of Jamaica, Lanco Paints — the Caribbean’s only silicone manufacturer — will now expand its home base in San Lorenzo, Puerto Rico. The manufacturer considered offers from several countries including the Dominican Republic, Panama, Guatemala and Chile before ultimately deciding to continue its growth in Puerto Rico. The $42 million expansion will double current production of 100% silicone products such as roof sealants. In total, the project will create 20 new jobs for a total of 350 employees on site. The Puerto Rico Department of Economic Development and Commerce will provide the company with $4 million from its Economic Incentive Fund. International companies look to increase capacity in Jamaica and Puerto Rico. Committed to the Caribbean by ALEXIS ELMORE alexis.elmore@siteselection.com CARIBBEAN Jamaica is adding hundreds of new jobs to its growing BPO sector. Photo: Getty ImagesP eter Swain shifted his classic car company into high gear when he went searching for a new home in America. After all, when you are the only UK company that builds vintage roadsters by hand and puts electric motors in them, you have carved out quite a niche. RBW Sports & Classics Limited in London recently entered into an agreement with the City of Danville, Pittsylvania County and the Virginia Economic Development Partnership to invest $ million and hire workers to establish an EV roadster and GT model factory in the Cane Creek Centre in Danville, a town of , people in south central Virginia. Old World, welcome to the New World, again. For CEO Swain, establishing a manufacturing beachhead in America was a must if his company wanted to realize its goal of increasing sales in the United States. RBW was introduced to Danville by another British manufacturer in the area, which lies just north of the North Carolina state line and about miles north of Greensboro. “RBW knew we needed a U.S. location to support U.S. sales growth and were busily considering options,” says Swain. “Upon visiting Danville, several important factors aligned. In the fi rst instance, a willing and welcoming local community and city and state representatives” made RBW feel at home, he adds. “Most importantly,” he notes, “workplace training initiatives in the colleges with a focus on industry was by by RON STARNER ron.starner@siteselection.com Virginia STATE SPOTLIGHT 142 NOVEMBER 2024 SITE SELECTION Why a UK Roadster Firm Chose A Small Virginia Town Gov. Youngkin says landing more FDI projects will be a top priority. BY THE NUMBERS VIRGINIA Higher Ed. R&D Expenditure in $000s: 2,121,745 Number of NCRCs: 38,277 | Percent Improved 2022–23: 11.13% Business Tax Climate Rank Change 2023–2024: +1 Industrial power cost per kWh: $7.99 Total Rev. as Share of Total Expenses, FY 2007-21: 103.6% 2023 Workers’ Comp Index Rate: 1.01 Selected Top Projects by Capital Investment COMPANY CITY INVESTMENT $M Amazon Web Services Louisa 11000 Amazon Web Services Staff ord 6000 Cielo Digital Infrastructure Culpeper 5400 Chirisa Richmond / Chirisa Capital Management Chesterfi eld 2000 LS GreenLink USA Chesapeake 681 Source: Conway Projects Database RBW Sports & Classics will build vintage roadsters and GT models like those shown here in a new factory in Danville, Virginia. Image courtesy of RBW144 NOVEMBER 2024 SITE SELECTION V irginia Gov. Glenn Youngkin takes an active role in economic development efforts. From Amazon Web Services committing $35 billion to expand its data center infrastructure across the state, to CoStar Group relocating its headquarters from Washington, D.C., to Arlington, Youngkin takes on a leadership role in sealing deals from private investors. He doesn’t always win, of course, as evidenced by the 11th-hour decision by the owner of the Washington Capitals and the Washington Wizards to remain in D.C. But Youngkin wants people to know that it’s not for lack of trying. In the following interview, he outlines his approach to economic development and how his state competes to win. — Ron Starner Hurricane Helene recently hit Virginia and several other states in the Appalachian region. What was the storm’s impact on your state? GOV. YOUNGKIN: The big picture is that we had two fatalities and 70 life-saving rescue missions. We could have been a lot worse. Many people have lost everything. We are still assessing the damage, but we are thankful it was not worse. Were you disappointed that the state was not able to convince the owner of the Washington Capitals and the Washington Wizards to relocate the two professional sports teams from Washington, D.C. to Virginia? What ultimately scuttled the deal? GOV. YOUNGKIN: Ultimately, it was very disappointing to not complete what I feel was one of the best economic development opportunities ever for our state. It was primarily a decision that Senate Democrat leaders made to not press forward with the opportunity to create 30,000 jobs and generate $12 billion in economic impact. It was an incredibly well-constructed deal. But sadly, the Senate Democrats in leadership did not want to press forward. In my view, it was a big miss for the Commonwealth. Amazon Web Services has committed to investing an estimated $35 billion toward expanding its data center technology infrastructure around the state. How were you able to land such a huge win for Virginia? GOV. YOUNGKIN: We developed a comprehensive package to meet the unique needs of this high-growth company that needed to expand. We felt that Virginia should win, and so we went to work to fashion a long-term partnership with Amazon. It was an exciting announcement because we brought collaboration with localities to support broad-based initiatives. This workforce is so unique. We have a $2 billion investment in tech talent across the Commonwealth. This will result in 32,000 additional computer science graduates across this investment period. AWS was a very big win. They have already moved forward and picked their sites to invest in. The state recently committed $126 million toward the Virginia Business Ready Sites program. What do you hope to accomplish with this initiative? GOV. YOUNGKIN: The challenge when I came in was the fact that Virginia had not invested much in getting sites ready for companies to start building so they could start manufacturing. We were behind the states south of us in this area. We have had two series of grants now with more coming. We will work to prepare sites with utility connections and grading, etc. I have to say that it works. We are investing across the Commonwealth. Several of our wins are because we have done this. Since I came into office, we have invested a total of $550 million into site development across the state. Convincing CoStar Group to relocate its corporate headquarters from D.C. to Arlington was a big win for Virginia. Combined with its ever-growing technology campus in Richmond, CoStar seems primed to become one of the biggest corporate entities in the state. What factors do you think won them over, and what factors in general are contributing to Virginia’s positive economic performance? GOV. YOUNGKIN: At the end of the day, CoStar sees that Virginia is the best state to do business in. They had deep experience with their presence in Richmond. They are building a big tower there. Their overall business continues to expand rapidly. It was natural for them to conclude that that their corporate headquarters should be in Virginia as well. If you were sitting across the table from the CEO of a company pondering an expansion decision in Virginia, what would you say to that person? GOV. YOUNGKIN: I sit there frequently. I am very happy to sit there. I get to talk about the great prospects in Virginia. We have done this with our trade missions to Europe and Asia. I make that pitch directly. At the heart of it is the business ecosystem that Virginia reflects. The numbers do not lie. We have the workforce. We have sites that are ready. We provide one of the most robust power infrastructures in the nation. You can have ready access to Europe from here. We have one of the most extraordinary port infrastructures in America. And we fully understand what it means to partner with companies. As companies make long-term investments in Virginia, we need to be great partners for them and that is exactly what we have done. Virginia is the right place to be. I am humbled by that. YOUNGKIN: INVESTING IN TECH TALENT DELIVERS BIG WINS146 NOVEMBER 2024 SITE SELECTION far the most advanced we had witnessed anywhere.” Swain credits “the whole Danville development team” with introducing him to the considerable resources of the local technical training team, welding college and other institutions equipping the region’s broad manufacturing base with a regular supply of blue-collar talent. Swain adds that it was not a foregone conclusion that RBW would locate a plant in Virginia. “We considered our options,” he says. “However, it became apparent, after talking with some key people we met along the way, that this was the right location.” Asked for examples of how Virginia demonstrated its business friendliness, Swain says, “They were incredibly helpful from start to finish. First impressions are so important. We found a willing, engaged environment from state leaders and were given a guided Virginia Gov. Glenn Youngkin delivers remarks at Phlow Corporation on July 11, 2024, in Petersburg. Image by Austin Stevens/Office of Governor Glenn Youngkin SITE SELECTION NOVEMBER 2024 147 tour of ‘like’ businesses and training facilities. We visited four times before our decision. Likewise, state leaders visited our English facility to check out our credentials. It’s a two-way street. We both arrived at a level of comfort to move forward as partners.” Swain discovered what other investors have found in Virginia: a business- friendly climate with a track record of supplying the technical skills that manufacturers need. When CNBC named Virginia “America’s Top State for Business” earlier this year, it detailed the many factors that propelled the Old Dominion to the top spot. “The state’s public education system is the best in the country, and it took a bipartisan compromise to make it happen,” CNBC wrote in its report. “Virginia is a leader in linking businesses with shovel-ready sites, helping the state finish third in this year’s most important category, infrastructure.” Virginia also earned high marks for its workforce, economy and quality of life. That CNBC ranking was one factor that helped Virginia to a No. 4 overall ranking in Site Selection’s annual Business Climate Rankings found in this issue. The state is also No. 1 in Inc. 5000 firms per capita, one of the 14 metrics behind the rankings. Founded in 2017, RBW will benefit from a $500,000 grant from the Commonwealth’s Opportunity Fund to assist Danville-Pittsylvania County with the project. Funding and services to support worker training are being provided through the Virginia Jobs Investment Program. Other assistance came from the Virginia Economic Development Partnership, the Danville- Pittsylvania County Regional Industrial Development Authority and the Southern Virginia Regional Alliance. Swain says that while he appreciates the incentives, they are not why his firm selected Virginia. “Incentives are welcome,” he says. “RBW must access the U.S. market anyway. We have not come for incentives. Plus, incentives are rightfully years away from realization. RBW has to deliver on its word to build and grow over the long term, and then incentives are gratefully received.” Those incentives, he adds, will be used to create “more positive ventures at our Cane Creek facility.” Gov. Youngkin: We Have More Work to Do Virginia Gov. Glenn Youngkin says that wins like RBW are the fruits of investing in government programs such as public education and site development. When I asked him what he considered to be his administration’s greatest accomplishments in economic Next >